FREE TRADE LUNCH

China has also sought to expand sales of imported food, including fresh meat and seafood in new FTZs in Shanghai, Tianjin, Fujian and Guangdong. Stores selling imported products have been set up in Shanghai and Tianjin FTZs, and it turns out seafood is the most popular item, usually snapped up soon after stores open. The Shanghai FTZ promised last week to expedite customs clearance for products to be sold in the zone.

"China's FTZs are a good vehicle for more trade," said Saint-Jacques. "But the challenge when you put in place a new system is to get companies to learn about it and become convinced of its advantages."

Many foreign firms are not aware of these advantages, so there should be a sustained educational effort to help companies understand how they might benefit, said Saint-Jacques.

China knows the potential for cross-border e-commerce to resuscitate foreign trade and has not hesitated to serve up a banquet of juicy policies promising tax rebates, faster customs clearance and cuts in tariffs of a number of imported products.

In 2014, China's e-commerce raked in 4.2 trillion yuan (690 billion U.S. dollars), a third more than in 2013. This compares with a 2.3-percent growth in all trade that same year, way below the 7.5-percent target. The first five months this year have seen a foreign trade decline of 7.8 percent.

The Ministry of Commerce reckons goods flowing in and out of China via online sales will hit 6.5 trillion yuan next year, and will eventually account for 20 percent of the country's total foreign trade.